1 28 Feb 2013 2012 Annual Results Group Highlights 2012 2011 - - PowerPoint PPT Presentation

1 28 Feb 2013

2012 Annual Results

2012 Annual Results – Group Highlights

2012 2011 Operating Cash Flow US$149m US$159m Underlying Profit US$48m US$58m Net (Loss) / Profit US$(158)m US$32m Cash Position US$753m US$618m Earnings per Share HK¢(64) HK¢21 on continuing

• perations

HK¢13 Dividend per Share HK¢5 (proposed) HK¢10

• Group results were impacted by:
• a US$199m write-off for our RoRo investment
• very weak dry bulk spot market
• a strong US$38m contribution from PB Towage
• Balance sheet retains substantial buying power:
• US$753m total cash and deposits
• Low 14% group net gearing
• Fully funded capital commitments of US$236m relating to 16 dry bulk vessels
• 8 dry bulk ships acquired since September 2012

2

US$m

Operating Cash Flow

US$m

Underlying Profit

US$m

Net Profit 149 159 2012 2011 48 58 2012 2011

• 158

32 2012 2011

2012 Annual Results

Pacific Basin Dry Bulk – 2012 performance

Handysize

• Handysize daily rate: US$10,460 (-23% YOY)
• PB outperformed spot market by 44%
• Respectable performance reflects value of our industrial and

customer-focused business model Handymax

• Handymax daily rate: US$11,720 (-22% YOY)
• PB Outperformed spot market by 31%
• Our reliance on relatively expensive medium-term chartered

ships in the depressed market resulted in a modest albeit positive Handymax contribution overall Post-Panamax

• 2 Post-Panamax ships continue to operate satisfactorily

under long-term charters Further investment in dry bulk

• Since September 2012, we have acquired for US$122m:
• 6 secondhand Handysize ships
• 1 secondhand Handymax ship
• 1 Handysize newbuilding resale

2012 Dry Bulk net profit

• Handysize contribution
• Handymax contribution
• Direct overheads

US$39.3m

US$62.0m US$6.7m US$(35.3m)

Operating cash flow US$114.1m Return on net assets 5%

3

2012 Annual Results

Owned Chartered Total As at 2011 AR On the water Newbuilding On the water Newbuilding 25 Feb 2013 Handysize

38 3 7 842 4 133

122 Handymax

5 4 5 43 1 54

45 Post- Panamax

1 1 2

2 Total

44 12 128 5 189

169

Pacific Basin Dry Bulk - Earnings Coverage

Pacific Basin Dry Bulk Fleet: 189 (on the water: 172 3,4) average age of our core fleet: 6.2 years old

1 2013 cover excludes 7,970 (Handysize) & 1,270 (Handymax) revenue days chartered in on index-linked basis 2 Includes 13 finance lease vessels 3 Includes 3 Handysize secondhand acquisitions not yet delivered 4 Includes 1 Handymax secondhand acquisition not yet delivered

• Our dry bulk business

model facilitates a valuable cargo book

• Enables us to
• utperform the market

(by 44% in 2012)

4

Fixed Unfixed As at 25 February 2013

Handymax Handysize 41,000 days 29,760 Days 1 2012 2013 55% US$9,340 100% US$10,460 14,610 days 8,740 Days 1 2012 2013 100% US$11,720 80% US$10,620

2012 Annual Results

Dry Bulk Market Information

• Excessive newbuilding deliveries in 2012 impacted freight rates across all dry bulk segments
• Lowest annual average BDI since 1987
• Average Handysize and Handymax daily market spot rates fell 28% YOY - still equalled or exceeded

average rates for larger vessels

• Protracted market weakness further impacted ship values
• 5 year old Handysize value: US$17m (down 13% from a year ago)
• Newbuilding prices also reduced to pre-boom levels: US$21m

Handysize Vessel Values Baltic Dry Index (BDI) versus Baltic Handysize Index (BHSI) & Baltic Capesize Index (BCI)

Source: The Baltic Exchange, Clarksons Feb 13: 5 years (32,000 dwt): US$17m Newbuildng (35,000 dwt): US$21m

5

$0 $10,000 $15,000 $25,000 $30,000 $35,000 500 1,000 1,500 2,000 2,500 3,000 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 US$/day net BDI BCI: US$4,488 BHSI: US$5,923 BDI: 741 26 Feb 2013: 10 20 30 40 50 60 03 04 05 06 07 08 09 10 11 12 13 US$ Million

2012 Annual Results

Dry Bulk Demand

International cargo volumes Congestion effect Tonne-mile effect Net demand growth

Source: R.S. Platou, Bloomberg

China coastal cargo, off-hire & ballast effect

2012 Chinese Minor Bulk Imports

2012 2011 2010

China imports of a basket of 7 important minor bulks : logs, soyabean, fertiliser, bauxite, nickel, copper concentrates and manganese ore – representing 1/3 of Pacific Basin’s 2012 cargo volumes

Chinese Imports increased 7% in 2012 Dry Bulk Effective Demand

• Overall dry bulk demand increased 7%
• Demand growth influenced by:
• Expanded volumes on high-volume major bulk trade routes
• Chinese imports of seven important minor bulks increased 7% - lending strong

support to global demand for smaller ships

• Logs trade was impacted by a slowdown in Chinese property sector

5 10 15 20 25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec m tonnes 7.2 10.0 9.0 3.1 4.1

• 2

2 4 6 8 10 12 14 2008 2009 2010 2011 2012E 1QE 2QE 3QE 4QE % change YOY

6

2012 Annual Results

Global Dry Bulk Fleet Development

• 2012 net fleet growth:
• Driven by 98m tonnes of new capacity (deliveries

slowed in 4Q)

• Heavy influx of newbuildings was only partially
• ffset by record-high scrapping of 33.6m tonnes
• 22% of Handysize fleet is over 25 years old

Source: Clarksons, Bloomberg, as at 1 Feb 2013

Handysize Age Profile (25,000-39,999 dwt)

2,115 vessels (68.1m dwt)

Dry Bulk Scrapping versus BDI Global Dry Bulk Fleet Development Handysize Dry Bulk overall YOY

3%

10%

0 - 15 years 67% 25 - 29 years 15% 16 - 24 years 11% 30+ years 7%

• 23.2
• 33.6

98.5 97.8 5.3 14.7% 10.3%

• 4%

0% 4% 8% 12% 16% 20%

• 40
• 20

20 40 60 80 100 120 2008 2009 2010 2011 2012 Million Dwt

Yard Deliveries Conversions Scrapping Net Fleet Growth YOY

3.6 6.4 19.6 27.2 500 1,000 1,500 2,000 2,500 3,000 5 10 15 20 25 30 35 2009 2010 2011 2012

Total dry bulk scrapping Handysize scrapping (25,000-39,999Dwt) BDI

Million Dwt BDI 23.2 33.6

7

2012 Annual Results

• Ship owners ordered 55% less new capacity YOY due to

weak market conditions

• 101m dwt of new capacity scheduled to deliver in 2013
• 2012 Newbuilding deliveries of 98m dwt were 30% below the

scheduled orderbook at the start of the year – expect approx. 25%-30% slippage in FY2013

Dry Bulk Orderbook

Handysize Orderbook

341 vessels (12m dwt)

Source: Clarksons, as at 1 Feb 2013

Handysize

(25,000-39,999 dwt)

Handymax

(40,000-64,999 dwt)

Panamax

(65,000-119,999 dwt)

Capesize

(120,000+ dwt)

Total Dry Bulk >10,000 dwt

19% 10 6% 5% 17% 11 22% 9% 18% 9 9% 6% 26% 8 3% 3% 17% 8 2% 5%

Orderbook as % of Existing Fleet Average Age Over 25 Years

Total Dry Bulk Orderbook

1,657 vessels (131m dwt) 2012 Scrapping as % of fleet on 1Jan13

m Dwt

13.5% 4.8% 0.7% 20 40 60 80 100 120 140 Scheduled

• rderbook Actual

delivery 2013 2014 2015+ 139m 98m 2012 30% Shortfall 2 4 6 8 10 12 14 Scheduled

• rderbook

Actual delivery 2013 2014 2015+ m Dwt 4.4% 11.5% 1.4% 2012 28% Shortfall

8

Jan13 Orderbook

1.1% 1.4%

2012 Annual Results

Pacific Basin Dry Bulk - Outlook

• Still excessive, but reduced, overhang of supply

+ shipbuilding capacity

• Global economic recovery negatively impacted

by further shocks relating to European finances and US government spending

• Premature shipowner optimism resulting in less

scrapping, increased ordering activity and increased vessel prices

• Increased national protectionism impacting raw

materials trade

• Potentially weaker growth in the Chinese

economy and industrial production

• Strong Chinese demand for minor bulk

commodities

• Global trade imbalances and fleet utilisation

inefficiencies

• Stronger than anticipated US economic recovery

and revived industrialisation in N. America

• Fewer newbuilding deliveries
• Continued high levels of dry bulk scrapping
• Bank lending constraints limit funding for ship

acquisitions PB Outlook:

• Dry bulk market to remain weak overall in 2013 though healthier fundamentals should limit further

downside in Handysize

• Dry cargo demand is likely to be similarly healthy as last year
• Supply-side fundamentals are improving, but will take time to absorb oversupply
• Challenging market conditions likely to generate further acquisition opportunities

Strategy:

• Invest in high-quality Handysize and Handymax ships
• Expand our dry bulk customer and cargo portfolio
• Decentralise our operational support function

9

2012 Annual Results

2012 Performance

• Continued strong demand for marine logistics from oil & gas projects
• Good growth in harbour towage sector
• PB Towage results have continued to strengthen due to:
• Improved market conditions
• Our increased market presence and penetration

Offshore Towage

• Western Australia and Queensland oil & gas developments continued

to drive demand for offshore marine logistics

• North West Shelf LNG construction projects have progressed further
• Some increase in demand in Middle East market, but remains difficult

due to excessive supply Harbour Towage

• Supported by 11% increase in volumes and higher market share in

the main liner and bulk ports Supply

• Barrier to entry for new entrants in Australian domestic market

PB Towage

2012 Towage net profit US$37.7m Operating cash flow US$52.1m Return on net assets 17%

35 Tugs (31 Owned + 4 Chartered) 7 Barges (6 Owned + 1 Chartered) 1 owned bunker tanker and 1 chartered passenger/supply vessel PB Towage Fleet: 44 vessels (as at 25 Feb 2013)

10

2012 Annual Results

PB Towage - Outlook

• Hesitation in global economy recovery and

Chinese slowdown – impacting Australian port activity

• Labour market shortages and cost

pressures

• Exchange rate movements affecting

Australia’s global competitiveness

• Growing project activity in Australasia and

construction support both domestically in Australia and internationally

• Increased exploration and production leading

to demand for platform support services

• Continued growth in Australian bulk export

volumes

• International transportation into Australian

driving increased harbour towage jobs in container ports PB Outlook:

• Well positioned competitively to participate in offshore and harbour opportunities as market develops
• Expected to be an important contributor to Group results in 2013

Strategy:

• To grow our towage businesses focusing on opportunities in expanding offshore support and bulk port

towage activity

• Recent decision to enter the Port of Newcastle

11

2012 Annual Results

PB RoRo

2012 PB RoRo net loss (Excluding US$199m impairment and exchange loss) US$(12.1)m Operating cash flow US$3.1m

• Considered a discontinued operation
• Continued severe weakness in the RoRo sector impacted results and prospects for our RoRo business
• Mid-year impairment and decision to exit RoRo in medium term
• Agreed sale of all 6 RoRos to Grimaldi for Eur153m (approx. US$188m)
• At least one vessel to be purchase by end of each six month period ending 30 June 2013 through

December 2015

• All 6 vessels to be bareboat chartered by buyers until transfer of ownership
• 5 bareboat charters commenced:
• 2 in Oct 2012
• 3 in Feb 2013
• 1 to commence in March 2014, after current time charter
• Our Eur162m, 12-year RoRo loan converted to a dry bulk loan of approx. US$210m

12

2012 Annual Results

89.5 (12.8) (10.6) (8.3) 74.5 (6.1) (12.1) (8.5)

2012 Annual Financial Highlights

2012 2011 (158.5) 32.0 Segment net profit

• Treasury
• Discontinued Operations - RoRo
• Non direct G&A

Underlying profit

• Unrealised derivative expenses
• RoRo vessel impairment charge & exchange loss
• Other impairments
• Gain from sale of shares in Green Dragon Gas

(Loss)/Profit attributable to shareholders 47.8 (3.3) (198.6) (4.4)

• 57.8

(1.6) (80.0)

• 55.8

US$ m 13

2012 Annual Results

• Earnings: Time Charter Equivalent (TCE) rates reflect weaker spot freight market
• Costs: Blended daily costs reflect lower chartered-in costs of market vessels
• Net profit: excludes US$2.1m unrealised net derivatives expenses

Pacific Basin Dry Bulk

14

Change

• 6%
• 23%
• 52%

TCE earnings (US$/day) +10% Owned + chartered costs (US$/day) Return on net assets (%) Dry Bulk Net profit (US$m) +25% Revenue days (days) 2011 11% 13,530 9,930 81.4 32,710 2012 5% 10,460 8,910 39.3 41,000

• 46%

Handysize contribution (US$m) 115.2 62.0 +841% Handymax & Post Panamax (US$m) (1.7) 12.6

• 10%

Direct overhead (US$m) (32.1) (35.3) Handysize

2012 Annual Results

As at 31 Dec 2012

Vessel Days

Daily charter hire rates & days 2013-2015

Charter days Charter-hire

Daily Vessel Costs - Handysize

Finance cost Depreciation Opex Charter-hire

* Includes 13 finance lease vessels

38% 46% 62% 54% 15,070 25,630 17,890 15,570

Blended US$8,910 (2011: US$9,930)

Owned* Chartered

3,900 4,440 2,810 2,800 1,000 960 7,710 8,200 11,810 9,340 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2011 2012 2011 2012

US$/day $9,460 $10,710 $10,800 9,380 days 6,270 days 5,700 days

2013 2014 2015

15

2012 Annual Results

Vessels & other fixed assets Total assets Total liabilities Net assets Net borrowings to net book value of property, plant and equipment Long term borrowings US$m

Treasury

• 745

618 127 599

PB Towage

208 273 55 218 31

PB Dry Bulk

1,057 1,292 437 855 301

31 Dec 12

1,270 2,470 1,138 1,332 14% 931

31 Dec 11

1,525 2,432 947 1,485 11% 779

Discontinued RoRo

• 131

4 127

• Net borrowings (after total cash of US$753m)

178 161

Notes: 31 Dec 2012 total includes other segments and unallocated

Balance Sheet

16

2012 Annual Results

Bank borrowings (US$469m): expire between 2015-2023 Finance lease liabilities (US$151m): expire between 2015-2017 Convertible Bonds i) face value US$230m: due Apr 2016, redeemable in Apr 2014 ii) face value US$124m: due Oct 2018, redeemable in Oct 2016 Vessel capital commitments at 31 Dec 2012 (US$236m) – 12 Handysize, US134m; 5 Handymax, US$102m

Borrowings and Capex

As at 31 Dec 2012

The Group had cash balances of US$753m, borrowings of US$931m and a net borrowings ratio of 14% against the Net Book Value of property, plant and equipment

17 60 82 141 34 35 27 20 69 18 20 69 8 37 215 21 230 124 50 100 150 200 250 2013 2014 2015 2016 2017 2018 2019 2020-2023

Redeemable in Apr 2014 Redeemable in Apr 2016

2012 Annual Results

Cash Flow

2012 Sources and Uses of Group Cash Flow

Cash Inflow Cash outflow

Operating cash flow US$148.7m EBITDA (excluding impairment) US$145.1m

+618.2 +753.5 +148.7 +163.1

• 195.4
• 12.5
• 16.4

+47.8

500 600 700 800 900 1,000

Opening Cash (1Jan12) Operating cash inflow Increase in borrowings Capex Dividend paid Net Interest paid Others Closing Cash (31Dec12)

US$ m

18

2012 Annual Results

Our Position, Outlook and Strategy

• Focus on our two core businesses – we are now out of most non core activities

Dry Bulk

• Strong cargo and customer focused business model: outperforming market, outperforming larger ships
• Expect the dry bulk market weakness of 2012 to continue through 2013
• Market needs longer to absorb over-supply before sustained recovery becomes apparent
• Acquisition opportunities for shipowners with available cash
• Strategy: i) Continue to purchase Handysize and Handymax ships at attractive prices

ii) Expand our dry bulk customer and cargo portfolio in tandem with our core fleet expansion iii) Enhance aspects of the customer experience through decentralised operational support Towage

• Well positioned competitively to participate in developing opportunities in Australia + internationally
• Strategy: Grow our towage businesses focusing in opportunities in expanding offshore support

and bulk port towage activity

19

2012 Annual Results

Disclaimer

This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Pacific Basin and certain plans and objectives of the management of Pacific Basin. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of Pacific Basin to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding Pacific Basin's present and future business strategies and the political and economic environment in which Pacific Basin will operate in the future.

Our Communication Channels:

• Financial Reporting
• Annual & Interim Reports
• Voluntary quarterly trading updates
• Press releases on business activities
• Shareholder Meetings and Hotlines
• Analysts Day & IR Perception Study
• Sell-side conferences
• Investor/analyst calls and enquiries

Contact IR – Emily Lau E-mail: elau@pacificbasin.com ir@pacificbasin.com Tel : +852 2233 7000

• Company Website - www.pacificbasin.com
• Corporate Information
• CG, Risk Management and CSR
• Fleet Profile and Download
• Investor Relations:
• financial reports, news & announcements, excel

download, awards, media interviews, stock quotes, dividend history, corporate calendar and glossary

• Social Media Communications
• Follow us on Facebook, Twitter and Linkedin!

20

2012 Annual Results

Appendix: Pacific Basin Overview

* As at Feb 2013

• A leading dry bulk owner/operator of Handysize & Handymax dry bulk ships
• Flexible Pacific Basin Dry Bulk business model
• Large fleet of uniform, interchangeable, modern ships
• Mix of owned and long-term, short-term chartered ships
• Operating mainly on long term cargo contract (COA) and spot basis
• Diversified customer base of mainly industrial producers and end users
• Extensive network of offices positions PB close to customers
• Also owning/operating offshore and harbour tugs
• >230 vessels serving major industrial customers around the world
• Hong Kong headquarters, 17 offices worldwide, 320 shore-based staff, 2,000 seafarers*
• Our vision: To be a shipping industry leader and the partner of choice for customers, staff,

shareholders and other stakeholders

Pacific Basin Dry Bulk PB Towage 21 www.pacificbasin.com Pacific Basin business principles

2012 Annual Results

Appendix: How we create value

Our large, flexible Fleet

• Large scale, high-quality dry bulk fleet
• Interchangeable nature provides flexibility

to customers and ability to optimise scheduling

• Modern fleet of tugs and barges

provides reliable service in harbours and for offshore projects

• Comprehensive in-house

technical operations function Our global office network

• 17 offices globally – including 14

dry bulk offices across 6 continents

• Localised chartering and operations

support

• Facilitates comprehensive, accurate

market intelligence Our strong corporate profile

• Founded in 1987
• Strong balance sheet enhancing our

profile as a preferred counterparty for cargo customers and tonnage providers

• Well-positioned to invest , expand
• Commitment to good corporate

governance and CSR Our customer focus priority

• Customer-focused model - strong

relationship with >300 customers

• Spot cargoes and long-term cargo

contracts – affording customers reliable freight cover

• Responsive, accessible and problem-

solvers at every turn

22

2012 Annual Results

Appendix: Pacific Basin Dry Bulk – Diversified Cargo

Pacific Basin Handysize and Handymax Cargo Volume 2012

• Diverse range of commodities reduces product risk
• Australia and China were our largest loading and discharging zones respectively
• Increasing proportion of our business in the Atlantic

23

2012 Annual Results

Appendix: China at late-Industrialisation Stage

• China growth matches historical trend

in Japan and Korea

• Suggests strong growth in dry bulk

segment to remain for medium term

• Similar trend for electricity and cement

24 Years from Start Date

Steel Consumption Per Capita

China (from 1990) Japan (from 1950) Korea (from 1970) India (from 2005) Tons per Capita 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 5 10 15 20 25 30

2012 Annual Results

Appendix: China Dry Bulk Trade, Iron Ore & Coal Demand

Source: Clarksons, Bloomberg

China is a significant net importer

• f coal in 2012

Export Import Net Import

China Iron Ore Sourcing for Steel Production

Import Domestic Total requirement for steel production (basis international Fe content level 62.5%)

Chinese Dry Bulk Trade Volume

Import Export China net import % of total bulk trade

m tonnes m tonnes 687 745 408 389 1,095 1,134 200 400 600 800 1,000 1,200 04 05 06 07 08 09 10 11 12 27 +4% +9% m tonnes

25

15 9 183 289

• 50

50 100 150 200 250 300 350 2006 2007 2008 2009 2010 2011 2012 +66% +58% 8% 8% 11% 13% 26% 24% 27% 29%

• 8%
• 4%

0% 4% 8% 12% 16% 20% 24% 28% 32%

• 300

300 600 900 1,200 2005 2006 2007 2008 2009 2010 2011 2012E % of total dry bulk trade

2012 Annual Results

• Earnings: 2012 Time Charter Equivalent (TCE) rates reflect weaker spot freight market
• Costs: Blended daily costs reflect lower chartered-in costs market vessels
• Net profit: excludes US$1.7m unrealised net derivatives expenses

Change

• 22%

+243% TCE earnings (US$/day) +27% Owned + chartered costs (US$/day) 2012 11,720 11,240 Handymax contribution (US$m) 6.7 +10% Revenue days (days) 14,610

Appendix: Pacific Basin Dry Bulk - Handymax

+97% Post Panamax contribution (US$m) 5.9 +841% Total contribution (US$m) 12.6 2011 15,390 15,090 (4.7) 13,310 3.0 (1.7)

26

2012 Annual Results

As at 31 Dec 2012

Appendix: Daily Vessel Costs – Handymax

Finance cost Depreciation Opex Charter-hire Vessel Days 6% 3% 94% 97% 370 13,690 12,970 940 Blended US$11,240 (2011: US$15,390)

Owned Chartered

4,810 5,250 3,750 3,300 8,560 8,550 15,590 11,430 5,000 10,000 15,000 20,000 2011 2012 2011 2012 US$/Day 27

Daily charter hire rates & days 2013-2015

Charter days Charter-hire

2013 2014 2015 $11,510 $13,720 $14,500 3,500 days 1,360 days 780 days

2012 Annual Results

As at 31 Dec 2012

Appendix: Towage Segment Operating Performance Before Overheads

Operating performance US$55.3m Direct overheads US$(17.6)m Segment net profit US$37.7m Operating cash flow US$52.1m

28

• 1.5

1.3 8.2 14.6 25.6 39.4 7.0% 17.0%

• 10

10 20 30 40 50 60 70 2011 2012 Offshore & Infrastructure projects Harbour Towage Middle East & others Total segment return on net assets US$m 32.3 55.3

2012 Annual Results

Appendix: PB RoRo Impairment & exchange loss in 2012

• Euro-centric RoRo market severely impacted by protracted European debt crisis and

macro-economic and political uncertainty significantly reduced demand for chartered RoRos

• 18 June, announced US$190m non-cash impairment and intention to exit RoRo

following reassessment of RoRo prospects

• 6 September, announced sale of all six RoRo vessels for €153 million
• Buyer is obliged to purchase at least one vessel by the end of each of the six month

periods ending 30 June 2013 through 31 December 2015

• Buyer to bareboat charter vessels at agreed charter rates until sale
• Further impairment of US$0.4m and exchange loss of US$8.2m in 2012
• Estimated Future Financial Effects:

29

US$m 2013 2014 2015 Interest Income - Treasury 7.5 6.1 2.8 Exchange Losses - Unallocated

• 8.3
• 5.0
• Total
• 0.8

1.1 2.8

Based on the 2012 year end rate of EUR 1 to US$1.3231

2012 Annual Results

Handymax x5, US$102m Handysize x12, US$134m A Combined View of Vessel Carrying Values and Commitments Vessels Commitments

• Further commitments expected in Dry Bulk

Future installments amount, US$236m Progress payment made, US$189m Vessel carrying values, US$1,081m As at 31 Dec 2012

Appendix: Capex and Combined Vessel Value

Total US$236m Total US$1,506m US$ m

30

873 208 189 236 200 400 600 800 1,000 1,200 1,400 1,600 Dry Bulk Tugs and Barges 208 1,298 US$ m 21 215 113 21 102 40 80 120 160 200 240 2013 2014

2012 Annual Results

Appendix: Convertible Bonds Due 2018

PB’s call option to redeem all bonds 1) Trading price for 30 consecutive days > 130% conversion price in effect 2) >90% of Bond converted / redeemed / purchased / cancelled Conversion/redemption Timeline Issue size Maturity Date Investor Put Date and Price Coupon Redemption Price Initial Conversion Price Intended Use of Proceeds To acquire additional Handysize and Handymax vessels, as well as for general working capital 100% HK$4.96 US$123.8 million 22 October 2018 (6 years) 22 October 2016 (4 years) at par 1.875% p.a. payable semi-annually in arrears on 22 April and 22 October PB’s Call Option 1) Trading price for 30 consecutive days > 130% conversion price in effect 2) >90% of Bond converted / redeemed / purchased / cancelled 22 Oct 2012 22 Oct 2016 Bondholders’ put option to redeem bonds Maturity 22 Oct 2018 12 Oct 2018 Closing Date 2 Dec 2012 Bondholders can convert all or some of their CB into shares

31

2012 Annual Results

Appendix: Convertible Bonds Due 2016

PB’s call option to redeem all bonds 1) Trading price for 30 consecutive days > 130% conversion price in effect 2) >90% of Bond converted / redeemed / purchased / cancelled 12 Jan 2011 12 Apr 2010 12 Apr 2014 Bondholders’ put option to redeem bonds Maturity 12 Jan 2014 12 Apr 2016 5 Apr 2016 Bondholders can convert to PB shares after trading price > 120% conversion price in effect for 5 consecutive days

Conversion/redemption Timeline

Bondholders can convert to PB shares when trading price > conversion price

Issue size Maturity Date Investor Put Date and Price Coupon Redemption Price Initial Conversion Price Conversion Condition Before 11 Jan 2011: 12 Jan 2011 – 11 Jan 2014: 12 Jan 2014 – 5 Apr 2016: No Conversion is allowed Share price for 5 consecutive days > 120% conversion price Share price > conversion price Intended Use of Proceeds To purchase the 3.3% Existing Convertible Bonds due 2013, then redeem the 2013 Convertible Bonds (now all redeemed & cancelled) 100% HK$7.98 (Current conversion price: HK$ 7.26 with effect from 24 April 2012) US$230 million 12 April 2016 (6 years) 12 April 2014 (4 years) at par 1.75% p.a. payable semi-annually in arrears on 12 April and 12 October Conditions

• Shareholders’ approval at SGM to approve the issue of the New Convertible Bonds and the specific

mandate to issue associated shares.

• If the specific mandate is approved by the shareholders at the SGM, the Company would not pursue

a new general share issue mandate at the forthcoming AGM on 22 April 2010

Closing Date No Conversion 32